Wooster, West Salem Equities Agree To Consolidation

Friday

Oct 1, 1999 at 12:01 AM

The past has been good concerning agriculture in Wayne County, but Tuesday night the area's farming community was looking ahead, not behind.

By better than a 4-to-1 margin, the stockholders of the Wooster Equity and the West Salem Equity agreed to consolidate at a special joint meeting of the equities' boards at the Farm Credit Services building.

The final tally of eligible ballots received counted 221 yes votes and just 48 nay votes, an 82 percent approval margin. West Salem Equity needed just 10 percent of its 376 eligible votes, or 38 ballots, received to validate the vote, according to the board.

The 82 percent approval figure is from fewer than half of the eligible voters, with 279 uncast ballots and 11 ineligible ones between the two equities' shareholders.

West Salem had a greater number of ballots cast, although a smaller percentage of the number eligible, 166 of 376 outstanding, but was almost as supportive with 129 for consolidation and 35 against it (78 percent).

"We had a very positive feeling from the members when we started this," said Gary Maguire, manager of the Wooster facility. "The vote and tally showed that.

"We had a good voter response and they supported (passage) by a pretty good majority."

"I think it's going to be good for both companies," said West Salem manager Bob Criss. "In time we'll cut expenses ... West Salem and Wooster too, we're facing increased expenses every year.

"If you don't have increased sales, it makes it tougher to make your margin."

Criss and Maguire cited advertising, insurance and auditors' fees as areas that consolidation can reduce duplicating costs between the businesses.

"We'll also be able to better utilize the equipment and personnel we do have," Maguire said.

"Hopefully as we go on, what (customers) will see is an improved company," he said. "(But) I don't see wholesale changes."

The biggest change may be consolidation of the company names. The Wooster Equity has been around since 1917.

But if the consolidation goes through as expected, becoming effective Jan. 1, unless either board exercises its option to back out, according to Criss, the singular name for the Wooster Equity and the West Salem Equity, including its Marshallville business, will be The Equity Exchange Co.

"I echo what Bob said, I think it's going to be a more viable company for the future," Maguire said. "Without (consolidation), we feel, as managers, that both businesses could struggle down the road.

"The thing that is good is this is a future look," he said. "This isn't a have-to. Neither organization has to consolidate today.